Skip to main content
No. of Recommendations: 0
It's not leverage that limits your gains but the fact that you're short. There is a barrier beyond which you cannot progress on the downside: 0.

Unless your timeframe is infinity and the market never ever drops again, then going long has its limits as well.

The easy shorts have been played. You're in risky territory now. I'm not saying do this or don't do that. I'm just saying keep an eye out and don't tell your friends you're a genius until you lock in your gains.

About six weeks ago I was sure the bottom was here and went long. It didn't seem so risky. The bull call credit spread I just did for a quick 10% was much less risky, mainly because I am no longer married to a direction. I think it's much *less* risky that way...
Print the post  

Announcements

This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.